TOLUENE AND XYLENE
A cautious note regarding recent price hike initiatives was struck by participants in the aromatic solvents market in the week ended 2 August.
Several producers announced increases on truck and railcar prices for toluene and xylene, to take effect in late July or early August, based on a bullish trend in aromatic barge prices.
Truck and railcar price initiatives for toluene were heard at plus 1–2 cents/lb, while proposed xylene hikes ranged from 2–4 cents/lb.
However, a reseller observed that the peak gasoline blending season is coming to an end, and any price increases that are implemented now are likely to be reversed no later than September.
There was a consensus in the market that xylene is once again being sold at a premium to toluene, and xylene prices were assessed up 1 cent/lb this week. Sources indicated that toluene is still available at prices close to the low end of the assessed ranges.
Mixed xylene (MX) spot prices were discussed at $4.25–4.35/gal FOB USG on 29 July. The range was up from $4.05–4.10/gal FOB USG in the previous week.
Prompt nitration-grade (n-grade) toluene price discussions were at $3.80–3.87/gal FOB early on 29 July, compared with the previous week’s $3.75–3.85/gal FOB USG.
US crude futures finished down, tracking a sell-off on the stock market in response to released data showing a drop in US consumer spending. Investors worried that despite the agreement in Washington to raise the debt ceiling, the US credit rating may still be downgraded.
The table below shows the evolution of crude oil values in the past four weeks.
NYMEX Front-Month Crude Oil Contract
| Date | 12 July | 19 July | 26 July | 2 August |
| (US$/bbl) | 97.43 | 97.50 | 99.59 | 93.79 |
AROMATIC 100 & 150
There were no changes heard on Aromatic 100 and Aromatic 150 spot prices this week. Sources said that Aromatic 150 is obtainable outside the assessed price ranges in both regions, but the current price assessment is believed to be representative of the market.
The price of regular-grade unleaded gasoline at the pump averaged $3.711/gal on 1 August, up from $3.699 on 25 July, according to the Energy Information Administration (EIA).
ALIPHATIC SOLVENTS
Demand for aliphatic solvents continues to be fairly strong in accordance with seasonal expectations, based on high consumption in the construction industry.
Sources said that supply has tightened, particularly in the case of hexane. Production problems in July contributed to the lack of aliphatic solvent availability.
In spite of this limited supply, producers have made no attempt to raise their prices in recent weeks, and no price increase proposals for August have been heard.
($1 = €0.70)
This week on ICIS ( www.icis.com ):
02/08/2011 16:44 Europe August OX settles up €30/tonne at €945/tonne
02/08/2011 13:32 Asia IX, PX fall on weaker crude futures as Formosa faces shutdowns
02/08/2011 10:10 China’s Qingdao Refining & Chemical to restart plants on 10 August
01/08/2011 10:05 Taiwan's FCFC runs No 2 and No 3 aromatics normally
27/07/2011 08:13 Taiwan's Formosa restart plans may get delayed by fire
